September 15, 2015 – JASON JIANG
ExxonMobil Indonesia has signed an agreement to sell its assets in Aceh to Indonesia’s state run energy giant Pertamina amid the doldrums in the offshore oil sector, according to local media reports.
The assets include the full stake in North Sumatra Offshore block, full interest in B block and 30% stake in PT Arun Natural Gas Liquefaction.
Pertamina upstream director Syamsu Alam said the deal has been approved by authorities and the asset transfer is expected to be completed in early October.
ExxonMobil Indonesia vice president public and government affairs Erwin Maryoto said the company remained committed to Indonesia but continually reviews its assets in line with the firm’s operating needs and financial objectives. A number of employees of ExxonMobil will also join Pertamina along with the transaction.
Following the completion of the deals, ExxonMobil’s key asset in Indonesia will be the Banyu Urip field at Cepu Block.
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ExxonMobil Indonesia sell its interests in North Sumatra Offshore block and PT Arun Natural Gas Liquefaction to the local state-owned energy company Pertamina. The financial details of the deal were not disclosed, but it is estimated the assets to be transfered until the end of the year. The agreement for the sale of ExxonMobil assets was signed by the both companies, but need to pass approval from the Indonesian anti-trust authorities. The main reason for sale are the low crude oil price, delay in offshore oil sector and high bureaucracy in the region. Following the transaction all the employees of ExxonMobil engaged with operation of North Sumatra Offshore block will also join Pertamina.
After the sale of interests in North Sumatra Offshore block and PT Arun Natural Gas Liquefaction the key assets of ExxonMobil Indonesia will be the Banyu Urip field at Cepu Block.
“We remain committed to Indonesia, but continually reviews our assets in line with the company’s operating needs and financial objectives”, said the vice president of ExxonMobil Indonesia for public and government affairs, Erwin Maryoto.